Accounting Policies of Rama Phosphates Ltd. Company

Mar 31, 2015

A) GENERAL

1 The accounts are prepared on the basis of the Historical Cost
Convention and in accordance with generally accepted accounting
principles, provisions and Accounting standard notified under section
133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts)
Rule, 2014,

All the assets and liabilities have been classified as current or non
current as per the Company's normal operating cycle and other criteria
set out in Schedule III to the Companies Act, 2013.

2 The company follows mercantile system of accounting and recognises
income and expenditure on accrual basis. Interest on unpaid call money
is accounted for as and when received.

3 Sales include sale of by-products and are net of sales tax if any and
includes subsidy.

4 Investments are valued at cost of acquisition. Only permanent
diminution in the value of investments meant to be held for long term
is recognised.

B) EXCISE DUTY

Liability for excise duty payable on finished products has been
accounted in respect of goods lying at the end of the year and added to
the value of closing stock.

C) FIXED ASSETS

(a) Fixed Assets are stated at cost of acquisition including taxes,
duties, freight and other incidental expenses related to acquisition
and installation of the concerned assets and net off cenvat.

(b) Impairment of Assets :

The carrying amount of assets are reviewed at each Balance sheet date
if there is any indication of impairment based on internal / external
factors.

If the carrying amount of the asset exceeds its estimated recoverable
amount, an impairment loss is recognised in the Statement of Profit &
Loss to the extent the carrying amount exceeds recoverable amount.

Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the assets, no longer exists or have decreased.

D) DEPRECIATION

Depreciation is provided on straight-line method, at the rates
prescribed in Schedule II to the Companies Act, 2013 on a pro-rata
basis commencing from the month of addition, except in case of plant
and factory building of edible oil refinery and solvent extraction
units and Sulphuric Acid plants, where the Depreciation is provided on
written down value method.

E) INVESTMENTS

Investments are stated at cost less any diminution in their value,
which is other than temporary.

F) INVENTORIES

Raw materials, Work in Process and at cost on First in First out (FIFO)
basis or net realisable value whichever is lower.

Packing materials Raw material and Work in Process are not written down
below cost if the finished product in which they will be incorporated
are expected to be sold at or above cost.

Finished goods At cost or net realisable value whichever is lower. The
cost is computed on weighted average method and includes cost of
materials, cost of conversion and other costs incurred in acquiring the
inventory and bringing them to their present location and condition.

Stores & spares At Cost on FIFO basis.

G) BORROWING COST

Borrowing costs attributable to the acquisition or construction of
fixed assets are capitalised as part of cost of the assets, upto the
date the asset is put to use. Other Borrowing cost are charged to
Statement of Profit & loss in the year in which they are incurred.

H) SUBSIDY RECEIVABLE

Subsidy receivable is accounted on the basis of actual sales and the
deductions if any from the same, made by the Certifying Authority, are
accounted as and when the same are communicated to the Company.

I) REVENUE RECOGNITION

1 Sales are recognised, net of returns and trade discounts, on despatch
of goods to customers.

2 Revenue in respect of insurance / other claims are recognised only
when it is reasonably certain that the ultimate collection will be
made.

J) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates
prevailing on the date of such transactions where these are not covered
by forward contracts. Liabilities in foreign currencies as on the date
of balance sheet are converted at the exchange rate prevailing on that
date.

Exchange difference in respect of liabilities incurred to acquire fixed
assets prior to April 1,2007, are adjusted to the carrying amount of
such fixed assets and in other cases, are recognised as income or
expense in the period in which they arise.

K) PROVISION FOR RETIREMENT BENEFITS

i) Short term Employee benefits

Short term employee benefits are recognised as an expenses at the
amount disclosed in the Statement of Profit and Loss for the period in
which the related service is rendered.

ii) Post employment benefits

Post employment benefits are determined using the projected unit credit
method, with actuarial valuation being carried out at Balance sheet
date. Actuarial gains and losses are recognised in full in the
Statement of Profit and Loss for the period in which they occur.

The obligation for Long Term benefits such as Long Term Compensated
absence, is defined benefit which is unfunded.

L) TAXES ON INCOME

1 Tax expense consists of both current as well as deferred tax
liability. Current tax represents amount of Income tax payable
including the tax payable u/s 115JB, if any, in respect of taxable
income for the year.

2 Minimum alternate tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the Company will pay
normal Income tax within the specified period.

3 Deferred Tax is recognised on timing difference between the
accounting income and the taxable income for the year that originates
in one period and are capable of reversal in one or more subsequent
period. Such Deferred Tax is quantified using the tax rates and laws
enacted or substantively enacted as on Balance sheet date.

M) EARNING PER SHARE

The Company reports basic & diluted earnings per share (EPS) in
accordance with Accounting Standard 20 on earnings per share. Basic EPS
is computed by dividing the net Profit or loss for the year by the
weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net Profit or loss for the year
by the weighted average number of equity shares outstanding during the
year as adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.

Mar 31, 2014

A) GENERAL

1 The accounts are prepared on the basis of the Historical Cost
Convention and in accordance with generally accepted accounting
principles and provisions of the Companies Act, 1956.

2 The company follows mercantile system of accounting and recognises
income and expenditure on accrual basis. Interest on unpaid call money
is accounted for as and when received.

3 Sales include sale of by-products and are net of sales tax if any and
includes subsidy.

4 Investments are valued at cost of acquisition. Only permanent
diminution in the value of investments meant to be held for long term
is recognised.

B) EXCISE DUTY

Liability for excise duty payable on finished products has been
accounted in respect of goods lying at the end of the year and added to
the value of closing stock.

C) FIXED ASSETS

(a) Fixed Assets are stated at cost of acquisition including taxes,
duties, freight and other incidental expenses related to acquisition
and installation of the concerned assets and net off cenvat.

(b) Impairment of Assets :

The carrying amount of assets are reviewed at each Balance sheet date
if there is any indication of impairment based on internal / external
factors.

If the carrying amount of the asset exceeds its estimated recoverable
amount, an impairment loss is recognised in the Statement of Profit &
Loss to the extent the carrying amount exceeds recoverable amount.

Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the assets, no longer exists or have decreased.

D) DEPRECIATION

Depreciation is provided on straight-line method, at the rates
prescribed in Schedule XIV to the Companies Act, 1956 on a pro-rata
basis commencing from the month of addition, except in case of plant
and factory building of edible oil refinery and solvent extraction
units and Sulphuric Acid plants where the Depreciation is provided on
written down value method.

E) INVESTMENTS

Investments are stated at cost less any diminution in their value,
which is other than temporary.

F) INVENTORIES

Inventories are valued as under :

Raw materials, Work in Process and Packing materials

at cost on First in First out (FIFO) basis or net realisable value
whichever is lower. Raw material and Work in Process are not written
down below cost if the finished product in which they will be
incorporated are expected to be sold at or above cost.

Finished goods

at cost or net realisable value whichever is lower. The cost is
computed on weighted average method and includes cost of materials,
cost of conversion and other costs incurred in acquiring the inventory
and bringing them to their present location and condition.

Stores & spares at Cost on FIFO basis.

G) BORROWING COST

Borrowing costs attributable to the acquisition or construction of
fixed assets are capitalised as part of cost of the assets, upto the
date the asset is put to use. Other Borrowing cost are charged to
Statement of Profit & loss in the year in which they are incurred.

H) SUBSIDY RECEIVABLE

Subsidy receivable is accounted on the basis of actual sales and the
deductions if any from the same, made by the Certifying Authority, are
accounted as and when the same are communicated to the Company.

I) REVENUE RECOGNITION

1 Sales are recognised, net of returns and trade discounts, on despatch
of goods to customers.

2 Sales includes sale of bye-products and are net of sales tax if any
and includes subsidy.

3 Revenue in respect of insurance / other claims are recognised only
when it is reasonably certain that the ultimate collection will be
made.

J) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates
prevailing on the date of such transactions where these are not covered
by forward contracts. Liabilities in foreign currencies as on the date
of balance sheet are converted at the exchange rate prevailing on that
date.

Exchange difference in respect of liabilities incurred to acquire fixed
assets prior to April 1,2007, are adjusted to the carrying amount of
such fixed assets and in other cases, are recognised as income or
expense in the period in which they arise.

K) PROVISION FOR RETIREMENT BENEFITS

i) Short term Employee benefits

Short term employee benefits are recognised as an expenses at the
amount disclosed in the Statement of Profit and Loss for the period in
which the related service is rendered.

ii) Post employment benefits

Post employment benefits are determined using the projected unit credit
method, with actuarial valuation being carried out at Balance sheet
date. Actuarial gains and losses are recognised in full in the
Statement of Profit and Loss for the period in which they occur.

The obligation for Long Term benefits such as Long Term Compensated
absence, is defined benefit which is unfunded.

L) TAXES ON INCOME

1 Tax expense consists of both current as well as deferred tax
liability. Current tax represents amount of Income tax payable
including the tax payable u/s 115JB, if any, in respect of taxable
income for the year.

2 Minimum alternate tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the Company will pay
normal Income tax within the specified period.

3 Deferred Tax is recognised on timing difference between the
accounting income and the taxable income for the year that originates
in one period and are capable of reversal in one or more subsequent
period. Such Deferred Tax is quantified using the tax rates and laws
enacted or substantitively enacted as on Balance sheet date.

M) EARNING PER SHARE

The Company reports basic & diluted earnings per share (EPS) in
accordance with Accounting Standard 20 on earnings per share. Basic EPS
is computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equityshares outstanding during the
year as adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.

Mar 31, 2012

A) GENERAL

1 The accounts are prepared on the basis of the Historical Cost
Convention and in accordance with generally accepted accounting
principles and provisions of the Companies Act, 1956.

2 The Company follows mercantile system of accounting and recognises
income and expenditure on accrual basis. Interest on unpaid call money
is accounted for as and when received.

3 Sales include sale of bye-products and are net of sales tax if any
and includes subsidy.

4 Investments are valued at cost of acquisition. Only permanent
diminution in the value of investments meant to be held for long term
is recognised.

B) EXCISE DUTY

Liability for excise duty payable on finished products has been
accounted in respect of goods lying at the end of the year and added to
the value of closing stock.

C) FIXED ASSETS

(a) Fixed Assets are stated at cost of acquisition including taxes,
duties, freight and other incidental expenses related to acquisition
and installation of the concerned assets and net off cenvat.

(b) Impairment of Assets :

The carrying amount of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal / external
factors.

If the carrying amount of the asset exceeds its estimated recoverable
amount, an impairment loss is recognised in the Statement of Profit &
Loss to the extent the carrying amount exceeds recoverable amount.

Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the assets, no longer exists or have decreased.

D) DEPRECIATION

Depreciation is provided on straight-line method, at the rates
prescribed in Schedule XIV to the Companies Act, 1956 on a pro-rata
basis commencing from the month of addition, except in case of plant
and factory building of edible oil refinery and solvent extraction
units and Sulphuric Acid plants where the Depreciation is provided on
written down value method.

E) INVESTMENTS

Investments are stated at cost less any diminution in their value,
which is other than temporary.

F) INVENTORIES

Inventories are valued as under :.

Raw materials, Work in Process At cost on First in First out (FIFO)
basis or net realisable value whichever is lower. and Packing
materials Raw material and Work in Process are not written down below
cost if the finished product in which they will be incorporated are
expected at or above cost.

Finished goods At cost or net realisable value whichever is lower. The
cost is computed on weighted average method and includes cost of
materials, cost of conversion and other costs incurred in acquiring the
inventory and bringing them to their present location and condition.

Stores & spares At Cost on FIFO basis.

G) BORROWING COST

Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalised as part of cost of the
assets, upto the date the asset is put to use. Other Borrowing cost are
charged to Statement of Profit & Loss in the year in which they are
incurred.

H) SUBSIDY RECEIVABLE

Subsidy receivable is accounted on the basis of actual sales and the
deductions, if any, from the same made by the Certifying Authority are
accounted as and when the same are communicated to the Company.

I) REVENUE RECOGNITION

1 Sales are recognised, net of returns and trade discounts on despatch
of goods to customers.

2 Sales include sale of bye-products and are net of sales tax, if any,
and subsidy.

3 Revenue in respect of insurance / other claims are recognised only
when it is reasonably certain that the ultimate collection will be
made.

J) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates
prevailing on the date of such transactions where these are not covered
by forward contracts. Liabilities in foreign currencies as on the date
of balance sheet are converted at the exchange rate prevailing on that
date.

Exchange difference in respect of liabilities incurred to acquire fixed
assets prior to April 1, 2007 are adjusted to the carrying amount of
such fixed assets and in other cases are recognised as income or
expense in the period in which they arise.

K) PROVISION FOR RETIREMENT BENEFITS

i) Short-Term Employee benefits

Short term employee benefits are recognised as an expense at the amount
disclosed in the Statement of Profit and Loss for the period in which
the related service is rendered.

ii) Post employment benefits

Post employment benefits are determined using the projected unit credit
method with actuarial valuation being carried out at Balance Sheet
date. Actuarial gains and losses are recognised in full in the
Statement of Profit and Loss for the period in which they occur.

The obligation for Long Term benefits such as Long Term Compensated
absence is defined benefit which is unfunded.

L) TAXES ON INCOME

1 Tax expense consists of both current as well as deferred tax
liability. Current tax represents amount of Income tax payable
including the tax payable u/s 115JB, if any, in respect of taxable
income for the year.

2 Minimum Alternate Tax credit is recognised as an asset, only when and
to the extent there is convincing evidence that the Company will pay
normal Income tax within the specified period.

3 Deferred Tax is recognised on timing difference between the
accounting income and the taxable income for the year that originates
in one period and are capable of reversal in one or more subsequent
period. Such Deferred Tax is quantified using the tax rates and laws
enacted or substantitively enacted as on Balance Sheet date.

M) EARNING PER SHARE

The Company reports basic & diluted earnings per share (EPS) in
accordance with Accounting Standard-20 on earnings per share. Basic EPS
is computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equityshares outstanding during the
year as adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.

Mar 31, 2010

A) GENERAL

1 The accounts are prepared on the basis of the Historical Cost
Convention and in accordance with generally accepted accounting
principles and provisions of the Companies Act, 1956.

2 The company follows mercantile system of accounting and recognises
income and expenditure on accrual basis. Interest on unpaid call money
is accounted for as and when received.

B) EXCISE DUTY

None of the companys finished products are liable for Excise duty
except Sulphuric Acid. This item is liable to excise duty in respect of
the quantity sold to non-fertiliser producers or traders and not in
respect of quantity used for producing fertilzers. Due to difficulty in
estimating the quantity of closing stock of Sulphuric Acid held for
selling to non-fertiliser producers or traders, excise duty liability
on the same, which is required to be accounted as per AS-2-Valuation of
Inventory, can not be ascertained.

C) FIXED ASSETS

(a) Fixed Assets are stated at cost of acquisition including taxes,
duties, freight and other incidental expenses related to acquisition
and installation of the concerned assets and net off Cenvat.

(b) Impairment of Assets :

The carrying amount of assets are reviewed at each Balance sheet date
if there is any indication of impairment based on internal / external
factors.

If the carrying amount of the asset exceeds its estimated recoverable
amount, an impairment loss is recognised in the Profit & Loss account
to the extent the carrying amount exceeds recoverable amount.

Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the assets, no longer exists or have decreased.

D) DEPRECIATION

Depreciation is provided on straight-line method, at the rates
prescribed in Schedule XIV to the Companies Act, 1956 on a pro-rata
basis commencing from the month of addition, except in case of plant
and factory building of edible oil refinery and solvent extraction unit
and Sulphuric acid plants where the depreciation is provided on written
down value method.

E) INVESTMENTS

Investments are stated at cost less any diminution in their value,
which is other than temporary.

F) INVENTORIES

Inventories are valued as under :

Raw materials : at cost on First in First out (FIFO)
basis or net realisable value
whichever is lower

: Raw material are not written down below
cost if the finished product in which they
will be incorporated are expected at or
above cost.

Finished goods : at cost or net realisable value whichever
is lower

Packing materials,
stores : at cost on a First in First out ( FIFO) basis

& spares

Work In Process : at Cost

G) BORROWING COST

Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalised as part of cost of the
assets, upto the date the asset is put to use. Other Borrowing cost are
charged to Profit & loss account in the year in which they are
incurred.

H) SUBSIDY RECEIVABLE

Subsidy receivable are accounted on the basis of actual sales and the
deductions if any from the same, made by the Certifying Authority, are
accounted as and when the same are communicated to the Company.

I) REVENUE RECOGNITION

1. Sales are recognised, net off returns and trade discounts, on
despatch of goods to customers.

2. Sales includes sale of bye-products and are net off sales tax if
any and includes subsidy.

3. Revenue in respect of insurance / other claims are recognised only
when it is reasonably certain that the ultimate collection will be
made.

J) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates
prevailing on the date of such transactions where these are not covered
by forward contracts. Liabilities in foreign currencies as on the date
of balance sheet are converted at the exchange rate prevailing on that
date.

Exchange difference in respect of liabilities incurred to acquire fixed
assets prior to April 1, 2007, are adjusted to the carrying amount of
such fixed assets and in other cases, are recognised as income or
expense in the period in which they arise.

K) PROVISION FOR RETIREMENT BENEFITS

i) Short term Employee benefits

Short term employee benefits are recognised as an expenses at the
amount disclosed in the profit and loss account for the period in which
the related service is rendered.

The obligation for Long Term benefits such as Long Term Compensated
absence, is defined benefit which is unfunded.

L) TAXES ON INCOME

Tax Expenses comprise both current and deferred tax at the applicable
enacted/substantively enacted rates. Current tax represents the amount
of inome tax payable/recoverable in respect of the taxable income/loss
for the reporting period. Deferred tax represents the effect of timing
differences between taxable income and accounting income for the
reporting period that originate in one period and are capable of
reversal in one or more subsequent periods.